3 Solar Stock “Bounce Plays” I’m Eying

[RagingBull Elite]( Dear Trader— Jeff Bishop here, A question on every trader's mind right now is whether the market can push higher without a stimulus. Yesterday, the Senate was unable to pass a $500 billion relief package, which contributed to a lot of choppy trading. But just because we saw some selling, it doesn’t mean our thesis needs to turn immediately bearish— we’re seeing a handful of opportunities to “buy a bounce” and gain off these potential short-term corrections. Today, we want to highlight one popular solar stock mover that dipped yesterday— and why it could bounce back with 2 related stocks from here. There were multiple big movers yesterday like SNAP, TWTR and GSX. However, Jinko Solar (JKS) was in the center of attention of most traders. And rightfully so: since the beginning of September the solar sector has been the hottest in the stock market. JKS was the leader of the pack: in a matter of 20 trading days, the stock went from $25 to $90.2, a whopping 360% gain. In the past weeks a lot of traders kept taking loss after loss trying to find the top in JKS. However, yesterday was the first day when it managed to close lower. Shares closed down at $68.61, down 21.63% on the day. Here’s what the intraday chart looked like: Congratulations to all those who took the short! However, if you missed it or tried to get long for a bounce, here is a quick intraday analysis: While hindsight is always 20/20, you can review this chart and familiarize yourself with the clues. Ideally, next time it will help you to take advantage of moves like this one. At worst, you could have better odds to avoid losses. Want to learn how to find the next mover like JKS, either long or short? Stocks that are on the move are the essence of Jason Bond’s weekend trading strategy. Tomorrow, he’s going to do [a scan of the market for stocks under $20 with a minimum of $1,000,000 liquidity premarket]( — with the goal of buying in on Friday and selling for gains Monday morning. Jason’s ordinarily a small cap guy— but let’s have a look at some other stocks in the solar industry, slightly higher priced, that would nevertheless catch Jason’s eyes. On a day when JKS is making headlines, it would be criminal to focus on something else. The solar sector as a whole has put on quite a show over the past few months. As the run up proceeded, a lot of people have been expressing doubts and rightfully so— the real businesses have seen nowhere near the gains that the tickers have. We agree with the thesis and definitely want to be short at some point, but we don’t know if it’s time yet— we have to respect the price action. From the technical standpoint, solars are still some of the strongest names out there and the uptrend isn’t broken yet. Rather than bet the farm on the first sign of weakness, we’ll be contrarians and look for bullish setups until the sector really proves it’s done. Here’s what we’re planning: JinkoSolar - JKS - The greatest beneficiary of the solar-hype, JKS has been one of the strongest stocks not just in the sector, but in the broader market as well— shares have gained more than 400% in the past 2 months alone - Yesterday marked the first time the stock had shown any real weakness— It sold off almost 20% on large volume and erased most gains of 2 prior sessions - While bears pound the table in joy and anticipation, we’re not convinced just yet— yesterday’s action can be just a healthy pullback on a name that’s so overextended, plus the bigger uptrend is still in tact - We’re by no means aggressively bullish, but want to be carefully long for at least a bounce if the stock gives a dip today off the open Our game plan is as follows: - Buy zone: $68-$70 - Profit zone: $75 for half, ride the rest till $77 and keep small for continuation - Stop zone: $67 SunRun - RUN - SunRun, another strong solar performer, just got a whole lot bigger - on 10/8 the company acquired Vivint Solar, whose stock pre-acquisition would’ve given a run for the money even to JKS - The market wasn’t as enthusiastic about the news— the stock, combined under the ticker RUN, has been drifting lower since and is now at a big resistance area around $59 - If the stock dips slightly and finds support, it could finally be due for a good bounce Our game plan is as follows: - Buy zone: $56-$58 - Profit zone: $66 for half, ride the rest till $71 and keep small for continuation - Stop zone: $54 FirstSolar - FSLR - FirstSolar stock can’t show off with such mind-boggling gains, but it’s still up a solid 300% from March’s lows - If you’ve been reading us for a while, you’ll likely know that we’re huge fans of relative strength, and that’s where FLSR excels— the stock had virtually no reaction to the hiccups of its two aforementioned sector colleagues - It’s been grinding and holding at the highs— should any strength come back into the sector, FLSR will be in a prime position for a breakout higher Our game plan is as follows: - Buy zone: $80-$84 - Profit zone: $92 for half, ride the rest till $99 and keep small till the uptrend breaks - Stop zone: $78 Like we said earlier, Jason Bond is first and foremost a small cap trader. But after seeing huge success trading these kinds of stocks, he knew he had to expand his horizon. He started studying mid- and large-cap stocks, and what he found is that the same momentum patterns he was using to trade small-caps works there as well. So how does he find momentum in the market? For the most part, there are just a handful of patterns he looks to when he trades momentum. That includes bull flag and bull pennant patterns, the ascending triangle pattern, the fish hook pattern— as well as bearish patterns, such as the bear flag and bear pennant pattern and the descending triangle pattern. After identifying these patterns, he likes to look for a good catalyst that could potentially add some fire to his conviction. Jason explains it all in great detail in [his Momentum Hunter ebook](, where he also provides real-money case studies on successful momentum plays. [Instantly download your copy of the Momentum Hunter ebook here today.]( [Can This Industry Break Out?]( By JC Parets of Chart Hunter --------------------------------------------------------------- [AMA: What’s Event-Driven Trading?]( By Kyle Dennis of Biotech Breakouts --------------------------------------------------------------- [2 Social Distancing IPOs on My Watchlist]( By Ben Sturgill of Daily Profit Machine --------------------------------------------------------------- [Generate Income Using Options Like A Boss]( By Dave Lukas of Options Profit Planner RagingBull, LLC 62 Calef Hwy. #233, Lee, NH 03861 [Click Here to stop receiving emails from support@ragingbull.com]( [Unsubscribe from all RagingBull emails]( DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website,application or other service ("Services"), please review our full disclaimer located at [(disclaimer. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. 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